Should Value Investors Buy Modine Manufacturing (MOD) Stock?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Modine Manufacturing (MOD). MOD is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 9.38, which compares to its industry's average of 22.87. MOD's Forward P/E has been as high as 10.29 and as low as 4.54, with a median of 6.61, all within the past year.
Another notable valuation metric for MOD is its P/B ratio of 2.31. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.64. Over the past 12 months, MOD's P/B has been as high as 2.49 and as low as 0.87, with a median of 1.31.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. MOD has a P/S ratio of 0.48. This compares to its industry's average P/S of 0.82.
Value investors will likely look at more than just these metrics, but the above data helps show that Modine Manufacturing is likely undervalued currently. And when considering the strength of its earnings outlook, MOD sticks out at as one of the market's strongest value stocks.
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Modine Manufacturing Company (MOD) : Free Stock Analysis Report
